Rearmament of Russian Army to Boost Economy – Dvorkovich
13:13 02/05/2012 MOSCOW, May 2 (RIA Novosti) - The Russian government expects that the rearmament of the army on which it is expected to spend over 20 trillion rubles ($681 billion) will boost the growth of the entire Russian industry, presidential aide Arkady Dvorkovich said in an interview with RIA Novosti.
“I believe that the decision to switch to a professional army, which requires a different armament, is without exaggeration the most important decision made over the last four years and it will have a tremendous positive impact on our entire country, on our society,” Dvorkovich said.
Russia has allocated more than 20 trillion rubles on the rearmament of its Army and Navy until 2020. As of April 15, the Russian Defense Ministry has concluded 77 percent of contracts worth over 520 billion rubles ($17.7 billion), although earlier Russian authorities set a deadline to place the state defense order by April 2012.
The presidential aide added that the decision to allocate such funds to the defense industry needs a major overhaul and hence the cost. But ultimately “it will be cheaper and better” than if the government had not started this process.
“The defense industry plays the role of one of the engines for technological development in all world major economies. These developments were made in the defense industry and then turned out to be the most interesting and best and then they were implemented in different spheres of the economy and society. The first that comes to mind is the internet. And here we differ from others; our military-industrial complex is not connected with the rest of the economy. And now that we have plans for upgrading the army, to invest some 20 trillion rubles in this area, we have a chance to unite the two sectors, that is focusing on defense and working for the society as a whole. This should be done and then these funds will not be wasted,” Dvorkovich said.
Answering a question whether the authorities carried out an analysis where the production would be carried and if it would be in demand, Dvorkovich said that the government was engaged in the process.
“I've visited different plants. There are companies that are at the highest tech level and they perform the most difficult tasks,” Dvorkovich added.
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